Hungary’s angry protests portend increased instability

Significance

Hungary’s ruling Fidesz party has extended the legal ceiling on overtime to 400 hours per year. The bill sparked heavy opposition in parliament and on the streets, uniting all opposition parties and Hungary’s weak and fragmented unions.

Impacts

• Independent legislators and extra-parliamentary forces will gain popularity as established parties, especially the Socialists, lose weight.
• The law will increase Hungary’s attractiveness to investors, especially big manufacturing enterprises.
• Violence on Budapest’s streets will put pressure on Fidesz’s allies abroad, especially the European People’s Party, to sever ties.